Information That You Might Find Helpful

Topics Included Below:

1. Capital Funding Reserve Studies: Explained

2. What Can Happen Without A Reserve Study? Druid Hills

3. Why Is A Community Master Plan Important?

4. Food and Beverage: The Whole Story

1. Capital Funding Reserve Studies: Explained

· Capital items include buildings, structures, equipment and other physical items.

· A capital funding reserve study is intended to provide a forecast for needed capital item replacements and/or non-routine overhauls/maintenance over a duration of time (usually 20 years).

· From that forecast, a capital funding budget is formulated for the specified duration of time.

· A reserve study estimates the expected useful life of capital items, calculates when those items must be replaced or receive major maintenance work, and formulates a long-range budget for the anticipated expenses.

· Reserve studies are performed by specialized firms that include experts in engineering and maintenance of all types of capital items.

· Almost all large communities have reserve studies performed on a regular basis (usually updated every 3-5 years).

· Many states require reserve studies to be performed for POA/HOA's and Condo Associations. Tennessee does not require such studies for community associations.

· Reserve studies allow the community's BOD and Management to properly budget for future capital replacement and non-routine maintenance expenses to help avoid budgetary "surprises".

· Reserve studies also provide strong assurance to the community's members/owners that the capital items are being properly maintained and budgeted for by Management and the BOD.

2. What Can Happen Without A Reserve Study? Druid Hills

· In the past, the Fairfield Glade Board of Directors has not conducted a reserve study. The BOD has consistently stated that the club's capital items are well maintained and that a reserve study is an unnecessary expense. (Finally, after a 50+ year delay, the BOD has recently agreed to have a reserve study performed.)

· When the new Druid Hills Golf Complex Concept was put forward by the BOD, questions arose about the suitability of the existing clubhouse. An outside consulting firm was hired to determine its suitability.

· The consulting firm found that the clubhouse was generally unsuitable, and had been badly neglected over the years.

· Specifically, the consulting firm found:

o Woodwork and Hardie Board needed to be replaced in numerous areas.

o Numerous roof leaks in the attic.

o Dry rot in multiple locations.

o Rusted light fixtures and ducts due to leaks.

o Inadequate attic ventilation.

o Water ponding on the roof causing the roof membrane to fail.

o HVAC spacing not meeting code.

o Handrails and ramps not compliant with ADA codes.

o ADA compliance issues with toilets, water fountains and other fixtures.

o The complete absence of fire sprinklers throughout the building.

o $860,000 in repairs and renovation needed to address the above items.

o Click to see the full BOD presentation.

3. Why Is A Community Master Plan Important?

· A community master plan is designed to provide the best possible environment for resident members.

· A master plan includes a detailed survey to understand the needs, concerns and expectations of the member residents.

· Comprehensive strategic planning for a community is critical to understanding where a community is today and where it must go tomorrow, so it can achieve maximum success.

· No activity is more critical to a community’s future than having and following its own Strategic Plan.

· Nothing of a major nature should be done at a community, be it bylaw, governance, facility or operational in nature unless it promotes the achievement of the community’s vision and mission.

4. Food and Beverage: The Whole Story

Recently a number of statements have been issued about The Glade’s Food & Beverage Operations. Here are three that may be of interest to you…

Statement #1: The Community’s Food & Beverage Committee has recommended that we have just one restaurant operated by the Club.
Fact: The Committee has recommended at least two restaurants be operated by the Club – Stonehenge Grill and a second venue at Druid Hills. In addition, The Committee has recommended that a third venue, located in the “Village Center Area”, be explored. This third venue would be operated either by the Club or by an outsourced provider. (Click to see the F&B Committee’s Recommendations to the Fairfield Glade Community Club Board of Directors, January 18, 2021).

Statement #2: The Community cannot support more than one F&B venue because 40% of our residents leave for the winter each year.
Fact: In a community-wide Strategic Direction Survey conducted in 2018 by an outside consulting firm, 87% of the respondents indicated that they live in The Glade “Year-Round”. Only 13% indicated that they were “Seasonal” residents. This is the most recent community-wide survey performed and had a very high response rate from the members.

Statement #3: The Glade Residents will not support financial subsidies for the restaurant operations.
Fact: In that same Strategic Direction Survey, residents were asked if they agreed or disagreed with the following statement: “Our amenities should be partially subsidized by dues to provide greater value to our members.” 66% of the members responding agreed with that statement, while 34% disagreed.